Correlation Between Citigroup and Groupama Entreprises
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By analyzing existing cross correlation between Citigroup and Groupama Entreprises N, you can compare the effects of market volatilities on Citigroup and Groupama Entreprises and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Groupama Entreprises.
Diversification Opportunities for Citigroup and Groupama Entreprises
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Groupama is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Groupama Entreprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupama Entreprises has no effect on the direction of Citigroup i.e., Citigroup and Groupama Entreprises go up and down completely randomly.
Pair Corralation between Citigroup and Groupama Entreprises
Taking into account the 90-day investment horizon Citigroup is expected to generate 108.42 times more return on investment than Groupama Entreprises. However, Citigroup is 108.42 times more volatile than Groupama Entreprises N. It trades about 0.08 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.98 per unit of risk. If you would invest 4,362 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,654 from holding Citigroup or generate 60.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.01% |
| Values | Daily Returns |
Citigroup vs. Groupama Entreprises N
Performance |
| Timeline |
| Citigroup |
| Groupama Entreprises |
Citigroup and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Groupama Entreprises
The main advantage of trading using opposite Citigroup and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Groupama Entreprises can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Groupama Entreprises will offset losses from the drop in Groupama Entreprises' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers ShortDAX | Groupama Entreprises vs. Xtrackers LevDAX |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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